In a filing with the Securities and Exchange Commission, Stonerise Capital Management, led by John C. Walker, revealed that it has edged down its position in Cash Store Financial Services Inc (NYSE:CSFS) to 781,000 shares, from 1.17 million shares held at the end of the fourth quarter of 2013.

Stonerise revealed five transactions which resulted in selling a total of 390,300 shares at an average price of $0.64 per share. Following the trimming of the stake, Stonerise Capital Management owns a 4.4 % stake of the company's common stock.

Cash Store Financial Services Inc (NYSE:CSFS) provides alternative financial products and services. Recently, the company released its first quarter results, wherein it reported a revenue of $45.2 million, versus $49.5 million in the previous quarter of last year. The loss per share for the first quarter was $0.43, compared to a loss of $0.10 per share in the previous quarter. The loan volume fell to $196.8 million from $203.5 million in the first quarter of 2013.

A couple of weeks ago, The Registrar of the Ministry of consumer Services in Ontariohas refused to issue a license to the Cash Store Financial Services Inc (NYSE:CSFS)’s subsidiaries The Cash Store Inc. andInstaloans Inc. The company is not permitted to sell payday loan products in Ontario. The Cash Store Inc. is prohibited from dealing as a loan broker with respect to its basic line of credit product without a broker’s license under the “Payday Loans Act”.

Earlier, the Board constituted a special committee to take actions on matters related to Ontario, with respect to the company’s inability to sell payday loan products in Ontario. The board will also evaluate other strategic alternative that will help increase the company’s value. The company has recently elected Rothschild as its independent financial advisor to assist the company in matters related to strategic alternative review processes. On the back of these developments, the stock of The Cash Store has dropped by over 70% since the beginning of the year.

Of the other hedge funds we track, Christopher Shackelton and Adam Gray, managed by Coliseum Capital, is the largest shareholder of Cash Store Financial Services Inc (NYSE:CSFS), holding 3.39 million shares, worth $5.42 million, as at the end of the fourth quarter of 2013.

Stonerise Capital Management, is an equity-focused fund, the fund has a very concentrated portfolio. It has 13.24% of its portfolio invested in Outerwall Inc (NASDAQ:OUTR), where the fund held 514,300 shares, worth $34.60 million. Next is portfolio, is Liberty Interactive (Interactive group) (NASDAQ:LINTA), wherein the fund holds 1.10 million shares, with a reported value of $32.29 million. Liberty Interactive is followed by Iron Mountain Incorporated (NYSE:IRM), with a $30.35 million stake, which contains 1.0 million shares.